Infibeam Avenues Q4 Results Review - Net Take Rates Steady; Strong Guidance Into FY2025: Dolat Capital

Dolat Capital Report

Infibeam Avenues Ltd. posted revenue decline of 20% QoQ (our estimate: -1%). Payments Biz declined 22% QoQ, while Platforms Biz. grew 6% QoQ. Payment TPV was at Rs 758 billion, down 8.6% QoQ and Credit Card mix lowered to 50% (Q3:55%), coming off festive season base.

Operating profit margin was up 113 bps QoQ at 5.5% (our estimate: 4.3%) led by better net payment take rates, which stood at 9.2 bps (Q3: 8.4 bps).

For FY25, Co. guided sales of ~Rs 39-42 billion (implies 23-32% growth), Ebitda of ~Rs 2.75-Rs 3 billion (9-19% growth) and PAT of ~Rs 1.75-2 billion (12%-28%).

Infibeam expressed a robust outlook, led by optimism in India payments, strategic focus in Middle East and AI investments.

We raise earnings by 8.2%/7.2% for FY25/FY26E, and we expect Infibeam Avenues to benefit from growing trend of online credit card spends and tech spends by Indian banks.

Maintain ‘Accumulate’ rating with a DCF based target price of Rs 36 (implies enterprise value/Ebitda of 25 times and PER of 47 times on FY26E).

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